The Pound to New Zealand Dollar (GBP/NZD) exchange rate has weakened since markets opened this morning after a turnaround in the global market mood bolstered the appeal of the ‘Kiwi’.
The Pound could be open to further losses today as a lack of economic data from the UK does nothing to support Sterling, however any further positive coronavirus developments from the UK could limit any major losses for GBP exchange rates.
Last Week: Pound New Zealand Dollar Stumbles on Lack of Economic Data
At the start of last week the Pound (GBP) had found itself supported against the New Zealand Dollar (NZD) as positive developments surrounding international travel to the UK regarding coronavirus added fresh support to Sterling.
A quieter economic calendar for New Zealand saw movement driven more by the global market for much of the week.
The GBP/NZD pairing ended the week trending lower as a broad weakness in the US Dollar (USD) paired with a strengthening market mood allowed the New Zealand Dollar to push higher heading into the weekend.
Three Things to Watch for This Week
- New Zealand Unemployment Rate
Overnight the latest unemployment figures from New Zealand for Q2 could provide the currency with fresh support during tomorrow’s session.
2. Bank of England (BoE) Interest Rate Decision
Towards the end of the week, the BoE will reveal their latest interest rate decision. Whilst no policy changes are expected from the bank all eyes will remain on the tone the bank chooses to take.
3. Coronavirus Developments
Both domestic and global coronavirus developments will continue to drive movement in the GBP/NZD pairing this week as investors continue to keep an eye on the prevalence of the delta variant.
GBP/NZD Outlook
A quiet economic week for the New Zealand Dollar will see movement largely driven by global coronavirus developments and the mood of global markets for much of the week. The latest interest rate decision from the BoE could also be a catalyst for movement mid-week.